News from your Accountants in Harrogate & Leeds

Keep yourself up-to-date on the latest accountancy news and information with our useful articles.

Time running out for Business Premises Renovation Allowance (BPRA)

February 1st 2017

The window of opportunity to take advantage of Business Premises Renovation Allowance (BPRA) is drawing to a close - to benefit from the relief, expenditure must be incurred on or before 31 March 2017 for corporation tax purposes and on or before 5 April 2017 for income tax purposes.

New exemption for pensions advice

February 1st 2017

From 6 April 2017 employers will be able to provide employees with pensions advice costing up to £500 a year without triggering a taxable benefit. The new exemption will cover not only advice on pensions, but will also extend to advice on general financial and tax issues relating to pensions. The exemption will replace the current exemption, capped at £150 a year, available solely for pensions advice.

Money purchase annual allowance to fall

February 1st 2017

Since 6 April 2015, individuals aged 55 and over have been able to flexibly access pension savings in a money purchase (defined contribution) scheme. To prevent ‘recycling’ of contributions (withdrawing and reinvesting to take advantage of the associated tax relief), a lower annual allowance, the money purchase annual allowance, applies (subject to certain exceptions) where a pension pot has been flexibility accessed.

Lifetime ISA

February 1st 2017

The lifetime ISA will launch in April 2017. A lifetime ISA can be opened by anyone between the ages of 18 and 40. Savings of up to £4,000 a year made before the individual’s 50th birthday will earn a government bonus of 25% - a potential bonus of up to £1,000 a year. There is no minimum contribution.

Deemed Domicile

February 1st 2017

From 6 April 2017 anyone who has been a resident in the UK for 15 of the previous 20 tax years will be deemed to have a UK domicile where they do not already have one. This will apply for all tax purposes and will replace the current deemed domicile rule for inheritance tax purposes whereby an individual is deemed to be domiciled in the UK where he or she has been UK-resident for 17 of the previous 20 tax years.

Making Tax Digital

January 18th 2017

Under the Government’s Making Tax Digital strategy, most businesses will be required to keep track of their tax affairs digitally and to update HMRC at least quarterly. To comply with your requirements in the new digital age, you will need to keep digital tax records and record and categorise your receipts and expenses.

Averaging rules for farmers

January 18th 2017

A quick reminder about averaging rules for farmers.

Averaging allows farmers to smooth out fluctuations in their profits (and consequently in their tax bills). New rules introduced from 6 April 2016 mean that for 2016/17 and subsequent tax years, farmers will be able to choose to average profits over two years or five years. Previously, it was only possible to average profits over two years.

Tax relief for Landlords

January 18th 2017

New rules start to take effect from 6 April 2017 which restrict the amount of tax relief that landlords can claim in respect of interest and other finance costs. For 2016/17 and earlier tax years the rules are simple - you just deduct any mortgage interest and any finance costs from your rental income when working out your taxable profit.